Apollo Tyres: Margins under pressure in July-September quarter
Higher sales didn’t lead to higher profits for Apollo Tyres in the first half of its current financial year. In the six months to 30 September, the tyre maker’s revenue rose 5.0 per cent to Rs 66.8 billion (£784.1 million) and operating profit stood at Rs 6.7 billion (£78.6 million). Net profit, at Rs 2.3 billion (£27.0 million), was down 59.1 per cent from the first half of the previous financial year.
Net sales in the second quarter of the financial year amounted to Rs 34.2 billion (£401.5 million), 11.5 per cent higher than in the corresponding period of the previous year. Operating profit came to Rs 3.8 billion (£44.6 million) and net profit to Rs 1.4 billion (£16.4 million), a result 85.2 per cent lower than a year earlier.
Commenting on the company’s performance Onkar S Kanwar, chairman, Apollo Tyres Ltd, said: “While our revenues have grown, our margins have been under pressure due to the higher raw material prices, up nearly 15 per cent versus Q2 last year. With several capacity expansion projects currently underway for the company, we are looking forward to a healthy growth in the coming quarters.”
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